A fresh wave of selling has rippled through the market, pushing Bitcoin (BTC) and Ethereum (ETH) below closely watched price levels and triggering another round of large-scale liquidations.
What began as a gradual pullback has turned into a broad deleveraging event, as weakening momentum, fading institutional demand, and cautious sentiment combine to pressure prices across major digital assets.
Bitcoin has been trading around the $70,000–$71,000 range after briefly slipping to levels last seen in late 2024. Ethereum has followed a similar path, falling toward $2,100 and briefly testing lower intraday levels. As prices broke through technical support zones, leveraged positions were forced out, accelerating losses.
BTC's price trends to the downside on the daily chart. Source: BTCUSD on Tradingview
Bitcoin Slips Below Key Support as Liquidations Mount
Data from multiple tracking platforms shows that more than $860 million worth of crypto positions were liquidated within a 24-hour period, with Bitcoin accounting for the largest share. Long positions dominated the wipeout, highlighting how heavily traders had been positioned for upside before the drop.
Bitcoin’s move below its 365-day moving average has added to bearish signals. On-chain analysts note that since falling below this long-term trend line in November 2025, BTC has declined at a faster pace than during comparable phases of the 2022 bear market.
ETF flows have also weakened, with U.S. spot Bitcoin ETFs shifting from net inflows to net outflows in early 2026, removing a key source of demand.
Market participants are now watching the $70,000 level closely. Some analysts see it as potential support, while others warn that a sustained break could open the door to a deeper move toward the $60,000 region if sentiment fails to stabilize.
Ethereum Deleveraging Adds to Downside Pressure
Ethereum has not been spared from the turmoil. ETH-related liquidations have exceeded $200 million in recent sessions, as the price dipped toward the $2,000 mark.
Large holders have also moved to reduce risk. On-chain data shows that Trend Research sold roughly 188,500 ETH over several days and repaid hundreds of millions of dollars in stablecoins to cut leverage, lowering its liquidation thresholds.
This deleveraging has shifted attention to potential risk zones between $1,576 and $1,682, where forced liquidations could cluster if prices continue to slide.
Sentiment Weakens Across the Broader Crypto Market
Beyond Bitcoin and Ethereum, major altcoins including BNB, Solana, and Dogecoin have posted daily losses of 6% to 11%. Total crypto market capitalization has fallen to around $2.4–$2.5 trillion, while open interest in derivatives markets continues to decline, signaling reduced risk appetite.
Sentiment indicators reflect growing caution. The Fear and Greed Index has slipped deeper into “extreme fear,” and concerns around stablecoin stability, particularly brief deviations in USDT’s peg, have added another layer of uncertainty. Traders remain focused on whether key support levels can hold or if further liquidations lie ahead.
Cover image from ChatGPT, BTCUSD chart from Tradingview
